Logistics Management Practices and Operational Performance of Fast Moving Consumer Goods Manufacturers in Nairobi

Abstract

Logistics management is a part of retail logistics that has become an important issue for practitioners and researchers especially when focusing on the „last mile‟ problem within an e-commerce context. The general objective of the study was to investigate the logistics management practices and operational performance of Fast Moving Consumer Goods Manufacturers in Kenya. Specific research objectives for this study was: to establish the logistics management practices employed by Fast moving manufacturing companies in Kenya, to determine the effect of logistics management practices on the operational performance of Fast moving manufacturing companies in Kenya and to establish the challenges logistics management practices employed by Fast moving manufacturing companies in Kenya. This study was guided by three theories which include the resource based view, institution theory, and Unified Theory of Logistics. In order to plainly study the topic of research, descriptive research design was used. This method of research was preferred because the researcher is able to collect data to answer questions concerning the status of the subject of study. The population of this study consisted of all Fast-Moving Consumer Goods Manufacturers in Kenya. This study adopted a stratified sampling technique. From the possible 766 target population, stratified random sampling was employed to select a total of 85 sample population. This study collected primary data using a self-administered questionnaire. The questionnaire included open and closed ended questions for ease of administration. The data collected was keyed in and analyzed with the aid of SPSS. For the first and the third objective, Descriptive statistics was used because they enable the researcher to meaningfully describe distribution of scores or measurements using few indices for the second objective, inferential data analysis was done using multiple regression analysis to establish the relationship between the variables.